The declaration and issuance of a stock dividend does affect the total amount of a corporation's assets, liabilities, or stockholders' equity.

Question

Quizplus · Accepted Answer

When a corporation declares and issues a stock dividend, it increases the amount of stock outstanding and decreases retained earnings, which ultimately affects stockholders' equity. This means the total amount of stockholders' equity is impacted by a stock dividend declaration and issuance.

The Declaration and Issuance of a Stock Dividend Does Affect